In the News—Week of May 26, 2025
Deal of the Week
Snowdon Partners, an Arizona-based multifamily developer, has closed a $57MM+ construction loan on 24+ acres of land they own for their newest 225-unit community, Elux at Ocotillo, in San Tan Valley, AZ. The transaction was handled by Senior Escrow Officer Bryan Selna out of the Scottsdale, Arizona office.
National
Rarified air: One World Center offering top two floors for lease for the first time
One World Trade Center, the Western Hemisphere’s tallest building, is leasing its top two floors (89th and 90th) as premium office space for the first time, the New York Post reports. The Trade Center is offering 46,000 square feet at heights of nearly 1,100 feet above Manhattan. The Durst Organization, co-developer with the Port Authority, is seeking rents up to $160 per square foot for these floors, which feature 20-foot ceilings and 360-degree views from the Atlantic Ocean to the East River. The timing coincides with a rebound in Manhattan’s office leasing market, with activity up 46% in early 2025 compared to the previous year. The building is 95% leased with tenants like Condé Nast and Ameriprise.
National
Real estate investment firm executive sentenced in crowdfunding scheme
A New York real estate investment firm executive has been sentenced to more than seven years in prison for orchestrating a major fraud scheme targeting investors in Atlanta and Miami, WANF-TV reports. Through a crowdfunding platform called CrowdStreet Market, Elchonon Schwartz raised more than $62 million from hundreds of investors for commercial real estate projects, including a large Atlanta complex and a Miami Beach mixed-use building. Instead of using the funds as promised for property investments, Schwartz diverted money to personal accounts and spent it on luxury items, stocks and unrelated expenses. The fraud was uncovered after his companies filed for bankruptcy in 2023, leading to his guilty plea and a court order to pay more than $45 million in restitution.
National
San Francisco projects increase in revenue from real estate taxes this fiscal year
San Francisco’s real estate market is showing its first signs of recovery since the COVID-19 pandemic, with transfer tax revenue expected to grow for the first time in four years, CoStar reports. The city projects it will collect $229.6 million in transfer taxes during fiscal 2024-25. That is a significant increase from the previous year’s $177.7 million. This positive trend is attributed to an uptick in high-value property sales over $10 million, though the number of such transactions remains below pre-pandemic levels. The improvement shows San Francisco’s office market is stabilizing, with increased leasing activity driven particularly by artificial intelligence companies and tech sector expansions.
National
Potential buyer for vacant Detroit complex known as Executive Plaza offers $5 million
A long-vacant Detroit office complex known as Executive Plaza, formerly housing state offices, has found a potential buyer after previous failed sale attempts, the Detroit Free Press reports via Yahoo. The property consists of two towers from the 1960s and 1970s along with parking lots. It has been in receivership since March 2023 due to mortgage default issues. After an unsuccessful $16.5 million deal with a Colorado developer and canceled auction plans, Southfield-based Blackacre Management has entered a tentative $5 million agreement to purchase the property. The buyer has experience with similar rehabilitation projects, including the conversion of an office tower in Pontiac into apartments and commercial space.
Arizona
EdgeCore Digital Infrastructure to more than double the capacity for its operations in Mesa
EdgeCore Digital Infrastructure has announced a major expansion of its data center operations in Mesa, acquiring nearly 44 acres of land to enable over 450 MW of capacity for hyperscale customers, AZ Big Media reports. The company has made significant progress by constructing and commissioning 206 MW at its first Mesa campus. “Today’s expansion announcement of EdgeCore’s operations in Mesa, Arizona is an exciting milestone in our company’s evolution,” the CEO of EdgeCore digital infrastructure, Lee Kestler, says.
Arizona
IKEA to open its a third location in Valley; store will feature small-format, Swedish deli
For years, IKEA had one store to serve the Phoenix area. Soon it will have three. IKEA has announced plans to open a small-format store in Phoenix near Tatum Boulevard and Cactus Road, reported ABC15. The store will occupy 75,000 square feet at the Village Square II shopping center. The store is scheduled to open in early 2026. It will feature a Swedish deli concept and more than 23,000 home furnishing items available for immediate purchase, though larger furniture pieces will need to be ordered online. IKEA operates a full-sized location in Tempe and the Plan & Order point in Scottsdale. The expansion reflects IKEA’s strategic commitment to offering customers varied store formats.
